Tax increase package targets smokers, drinkers

Malia Spencer

Wednesday, July 23, 2003 | 11 a.m.

The inclusion of the so-called sin taxes in the $836 million tax plan approved by lawmakers Monday enraged some Southern Nevadans while others cheered the taxes.

In a late-night session, legislators passed a broad tax package that included a liquor tax increase of 75 percent and a 45-cent per-pack cigarette tax increase.

"I was in shock this morning," Grace Bommarito, manager of a Cigarettes Cheaper!, on Green Valley Parkway said Tuesday. "I was livid."

Bommarito, a smoker for 30 years, said she thinks the tax increase on cigarettes is discriminatory and that Nevada smokers are being "victimized."

"Yes, I choose to smoke. Why should I be penalized?" she said.

She said smokers are being targeted because they are a "soft target."

Bommarito said she has no children and doesn't think it is fair that smokers will be footing the bill to educate other people's children.

The increasing cost of her habit is not the only reason she is upset. Fifty percent of Bommarito's business will be affected, she said. She predicts that more people will travel to Indian reservations to purchase tax-free tobacco products.

"It could cost my business thousands and thousands of dollars," Bommarito said.

Victor Guy, a patron at Big Dog's Cafe, shared Bommarito's frustration. A smoker for 56 years, Guy said the tax increase should have been across-the-board, with an increase in sales tax.

"If you are going to tax people, tax everybody," Guy said.

He added that he doesn't mind paying more taxes but doesn't like being targeted as a smoker.

Guy already buys his cigarettes, Camels nonfiltered, by the carton on the Indian reservation at Snow Mountain each weekend when he goes golfing there, and he thinks more smokers will do the same.

But not all smokers were upset by the new cigarette tax. Caroline Corbett, a Las Vegas resident who says she has been smoking for "too many years," said she didn't mind the new tax if it would help pay for schools.

"If this will help it's OK by me," she said. She added that she hopes now schools will open on time and the district will be able to pay teachers.

Anti-smoking advocates are hoping the increase in cigarette prices will cause some people to quit. Corbett said she didn't think the price per pack would change anyone's smoking habits.

"In this town where you smoke everywhere I don't think it will affect anybody," Corbett said. "There are far more serious questions about smoking than price."

Former smoker Mike Johnson said he thinks it is "fascinating" that the government is taxing an addiction.

"For them to put a tax on something that's an addiction is brilliant," said Johnson, who quit smoking after 15 years with the help of Nicotine Anonymous.

There should not be an overall decrease in the consumption of cigarettes, Mary Lau executive director of the Retail Association of Nevada said. The 45-cent increase is not enough to deter a large number of smokers from their vice, she said.

"Someone traveling here from California or Utah will still buy cartons of cigarettes to take home because the taxes are lower," Lau said.

However, Assemblywoman Kathy McClain, D-Las Vegas, who approved the tax increase, disagreed and thinks more smokers will turn to online cigarette sales to avoid the taxes. McClain,who already purchases her cigarettes online, said it will make more sense to their pocket books.

"I still think we are going to lose people," she said.

As large purchasers of cigarettes and liquor, local bars and casinos will feel the changes of both taxes.

Leslie Pittman, spokeswoman for Station Casinos, said the company is still assessing the situation and has not done a detailed response study yet.

But she added, "we will definitely feel the pinch."

A spokesman for Harrah's Entertainment Inc. said that company also is still evaluating the impact of the new taxes.

"We will do what is necessary as we move forward," Gary Thompson said.

He did say that the impact will probably be felt more by smaller operators who have minimal profits.

Kurt Weisner, CEO of Big Dog's Hospitality Group, said he will be taking the approach of "business as usual." He said the per-pack price of cigarettes sold in his establishments will now probably top $5. But he said patrons should not see an increase in drink prices.

He also said there will likely be no changes to the company's complimentary drink policy. He will not stop "taking care" of his best customers, he said.

"I think they would notice if we treated them differently," Weisner said.

He said the added liquor tax would just be an extra cost of doing business.

Some Nevadans applauded the cigarette tax increase. Buffy Martin, director of government relations for the American Cancer Society, saw the tax as a wonderful way to generate money.

"We are glad the Legislature saw the wisdom in increasing the tax," she said.

She said the American Cancer Society was looking for a stiffer increase of 70 cents.

In fiscal year 2001-2002 about 173 million cigarettes were taxed in Nevada, generating $41.8 million.

But Gail Dixon, a smoker for 30 years, was not happy about the cigarette tax increase no matter how much money it would bring the state and said her habits would not change.

"I know it's not going to make me quit," she said.